Good News for American Business
Hamilton finally gets in gear to help failing American Manufacturers.
Last week Congress passed a new Tariff law, that was proposed by Alexander Hamilton. The tariff places an 8 percent tax on dutiable imports from foreign countries. This is the first step in a much-needed protective ring for fledgling American manufacturers. Before this new tariff, American companies could not compete with British goods that were flooding the market at extremely low prices. The drop in prices was brought about by a surplus created mostly by the Revolutionary War, in which British goods were stockpiled with nowhere to ship. So, when the war was over and trading once again was open between the United States and Britain, the British companies have to liquidate their excess supplies at ultra low prices; causing prices to fall far below the prices of American companies. For example, if there were two pairs of shoes with comparable quality, one made in America for $10.00, and another made in Britain for $9.50, the British made shoe would obviously get the customers. However, with the 8 percent tariff, the British shoe will cost $10.26 making the American made shoe much more appealing. Also the tariff is a perfect example of the need for a strong Federal Government. If individual states had tried to enforce this tariff they would have found it very difficult. For without the entire country standing together, foreign companies would have found ways to get around the tariff by playing one state against the other. With this tax American Company's can grow and flourish behind this badly needed protection.
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